Tuesday, October 11, 2005


Wallet Talk Wednesday

It’s been a busy week and a funny week too because I was given the chance to join in a great business “OPPORTUNITY.” Found out that it’s just another MLM recruiter trying to get me on board. It was QUIXTAR, and the interesting thing is that I learned a lot when I researched QUIXTAR. I also learned about AMWAY’s connection with ROB KIYOSAKI.


My view on Robert Kiyosaki, the Rich Dad, Poor Dad Guru, changed after reading an online article about him and his link with AMWAY.


It’s a good book to shake a person up not to rely on companies to take care of them especially now when pensions and health benefits are being attacked by companies that are having financial problems. Also, it’s a good STARTING book for someone who is interested in setting up a business.


1st Rob’s bashing on education. Education is a very important aspect of a person’s life both financially and as a part of society. Statistically people with college degree earns more than people that are non grads in their lifetime. Doctors, Scientist, Lawyers, Business Executives and Specialized Engineers are some of the most highly paid people in the world. Education is not only a benefit financially it’s also a benefit socially where people get to be educated on economies, environment, science, philosophy, etc. etc.

2nd Rob’s pimping of creating your own business. This is not that bad in a sense BUT remember, NOT EVERYONE can handle taking care of a business. 90%-95% of business’ FAIL within 10 years (info from some financial books I read a year back). Having your own business is also not a means that will get you rich. Example, you open your own store that earns a profit of 40-50K a year. You have to pay for your own benefits such as medical, retirement and life insurance. You also have additional overhead such as electricity, water, inventory, etc. etc. While a fresh grad of business or computer related field can earn 40-50K a year where the company will provide Medical, 401K, etc. etc.

I think he’s pimping creating your own business because he’s involved with Multi Level Marketing(AMWAY), His audio book “The Perfect Business?” contains nothing but pimping MLM as if it’s the becoming of the new business model. Saying that it act as if you really own your own business because you sell their products and get people onboard with you when if fact they just sell their product to you so whether you sell it or not doesn’t matter much to them because they already got their profits and they now have a steady stream of income coming from YOU and your downline.

3rd There are a lot of contradictions that Rob said. The RDPD says that he brought companies public but on the Guide to Investing he said that he have not brought a company public. So What’s What? Did you or didn’t you?

Liar Liar pants on fire BIAOTCH!

He’s only getting money from his books and his seminars where he’s pimping his products too LOL! He’s not a Trump, Buffett, Graham, Dell, Gates or Walton.

It has been my gut feeling that he really didn’t get rich because of his business ventures or investments but rather on selling his books, this could actually be true. I wish I saw this link before Here’s a link of the analysis on Robert Kiyosaki.


INTERVIEW WITH THESTREET.COM where he says he's retired since '94 but until now he's doing seminars for $20/person I think, and selling his books in those seminars too. Not that rich yet huh! Just full of contradictory statements.

I’d listen to Suze Orman rather that Robert K. Though Suze also just pimps her products too and doesn’t really give great advice to make money IMO. All she says is save, kill your debt, invest in something (she doesn’t even give specifics on what to invest in too), pay additional money on your mortgage…blah, blah, blah, but I’ll take her "TRUE" content than Robert Kiyosaki’s.

WHY I don’t like MLM:

I don’t like them PRIMARILY because of their methods of acquiring “DISTRIBUTORS.” They say you can earn this much and that much and you’ll be free and have so much money and time that you can retire early. That’s all BS. The ones that get rich are the ones on top because they provide the products and the downstream buys them for the full price. I bet I can find the same products whether they are vitamins, makeup, clothes, etc. cheaper somewhere else.

YOU WILL NOT BE A MILLIONAIRE BY DOING MLM. YOU WILL SPEND A LOT OF TIME DOING MLM TOO IF YOU WANT TO MAKE GOOD MONEY FROM IT. You DON’T OWN the business even if they tell you it’s like “Franchising”, it’s not and far from it. The owners and head honchos of the companies such as AMWAY/QUIXTAR, etc. etc. will get rich NOT THE REGULAR JOE LIKE YOU OR ME.

They should just SAY IT FOR WHAT IT IS. They have a product to sell and you sell it for them, that’s it, the way to make money is to either sell your product OR get some people to sell it for you and to sell your stuff to those people. YOU WILL NOT GET RICH BY DOING THIS unless you’re on TOP and get a large chunk of commissions or part of the management team that handles the channels.

MLM info Links:


THAT IS WHY I LOVE LISTENING TO ROB BLACK. He’s our bay area financial expert that has a show on KRON4 at 10AM PST and radio show at 5:00PM PST on some radio or on this link (online radio show): http://universaltalknetwork.com/listen.htm

Rob Black is a great financial guy because he tells it straight up, no BS. He’s not out there to sell stuff to your face, in his seminar he actually told us NOT to buy his book because we might already know what’s in it and he recommended us to buy Ric Edelman’s “The Truth About Money” because he said that it’s a better book than his. His seminars are also only $5 a pop and all of it is given to charity too. Why he gives all to charity, because he's rich already, he made all his money in the stock market.


We are not in any way shape or form millionaires yet. We are your average JOE, we are also not highly paid individuals, we are not Doctors or Lawyers or in a profession where we get SIX figures in salary. We have only followed good advice concerning various investments from books and going to seminars of those people that already made it. People who have made it don’t have to pimp their products or books to you so you should watch out for those who sell you’re their stuff on seminars that you attend. AND you don’t need that many books and products to buy in order to set yourself up to become financially free.

So why am I "attacking" Robert Kiyosaki? NO I'm not jealous of him, we also want to be "wealthy" and retire early, and our first steps were reading and researching which is what people normally do. But then why be misled by someone who didn't get rich by investing and creating a great business? It's dangerous to take advice based on his book, I feel sad for the people who just keeps on buying his products and keeps on making HIM rich instead of themselves. I'd like to also help other people with the same goals as we have and help them not to be mislead by the Robert Kiyosaki's of the world.
We have 2 houses in the North California (Bay Area) which values up to $1.45M BUT that’s NOT our NET WORTH, our net worth is less than our properties. We saved in order to afford getting the houses and we don’t live above our means. We have no other debt except for the 2 houses but we do have a large portion of our net worth in real estate right now so we will be increasing our assets to other vehicles such as mutual funds/reits/stocks to diversify our investments. I will talk about money matters next time and our path to try to become wealthy.



Blogger FunkyB said...

I must be living under a rock because I have NO idea who this fraud is...but I applaud you for a well-said rant!

5:19 PM  
Blogger Saint Eroica said...

for some people i know, his book worked, but personally, i do find it "too easy to be true"... like reading a fiction... thanks for your insights... ;)

9:35 AM  
Blogger Jonathan said...

Good job, always do your due diligence. Kiyosaki is a salesman, and a pretty good one at that.

12:11 PM  
Blogger Jesus Hates Quixtar said...

quixtar is a scam and a cult!

1:27 PM  
Blogger Joecool18 said...

If he was making money with his system, he would prbably be too busy counting his money to write such a book. It's like Don Lapre. Is he making any money off his odeas, or making money selling techniques that may have worked for him in the past?

Very similar to quixtar diamonds, many who built their businesses while it was called amway, so why are they qualified to teach you how to build an internet business?

5:09 PM  
Blogger b4freedom said...

This guy is a fraud. My brother totally buys into it. He’s 22 and purchased his second rental property. Sounds good right? The problem is that his first property pulls in $300 a month over his mortgage. That’s quickly eaten up by repairs. I believe he has a net loss. His second property is a dive. He managed to put nothing down and get $10,000 back on closing. How did he do this? He lied. He created a complex scheme. He has no salary. He has no real job. He lives with mom and dad. After fixing up my own house (the one I live in – did all the work myself) I can honestly look at his property and say that it needs about $40,000 worth of work and that excludes labor. Nothing on the house passed inspection. What does he do a week after closing on his house? He goes on vacation; overseas. It must be nice. My fear is that my brother is way over his head and is going to get in trouble. He has no safety net. Mom and Dad are financially strapped with medical bills.

My brother’s real estate investment got me to thinking. What’s in these RDPD books? So, I borrowed my brother’s copy. I also saw PROPHECY in the clearance section at the local book store. I read both of them. It was painful to read the redundant child like stories. I went online and read reviews. Most reviews start with something along the lines of “This book would be good for beginners…” No, it wouldn’t. Both books are misleading, encourage criminal and unethical behavior, provide false hopes, and are factually incorrect. How is any of that good for beginners? My brother has a dream and is taking advice from a fraud.

Don’t get me wrong. I’m not knocking real estate as an investment medium. It’s just not as easy as all of the get-rich-quick via real estate gurus claim it is. Do a couple of simple things first. Have a safety net. Perhaps you should have $20k in the bank to cover your emergencies? Be honest. Lying to get a mortgage is a crime. You can go to jail. Learn more. Take a real estate course (from a real school).

If you have an interest in reading PROPHECY, let me save you some time. The basic premise is that in the year 2015 all of the baby-boomers are going to turn 71 and sell their mutual funds, 401k, and 403b’s causing the worst market crash in history. This is really a recycled idea from other authors that make better arguments. PROPHECY provides no clear or precise explanation on how to protect your assets despite the claims on the cover. He generally advises you to create your own business. I believe Amway was suggested.

Personally, I think Amway is a great company. What other company can get so many Mormons to fork over their hard earned money just so they can have the privilege of recruiting other people into doing the same thing? Oh wait, yeah I forget, they already do that at church. Amway must be second nature.

8:25 PM  
Anonymous Anonymous said...

Kiyosaki is a fraud. Rob Black is okay, but not great. Suze's advice is terrible, she should go back to school. Personally, I think Ray Lucia is better than any of them.

9:32 AM  
Anonymous Anonymous said...

Good advise. I'm rich dad, poor dad and there seems to be some good information. I don't know if he's a fraud or not but, additional information is good to guide you to a path that works for you.

All MLM's are not bad. Beware of ones that require you to pay and not make. Some require a license and education that you do pay for and make real money, not chump change. Your upline makes money but, only when you do. Don't forget Car sales is a form of MLM. You sell and get a commission, the finance manage gets a commission and so does the owner. Your commission (like bonuses at work) aren't as high as the managers but, it's still a good commission from where you are. These MLMs don't REQUIRE you to recruit. BEWARE of that too. I'm involve with a MLM that specializes in finacial services. There a strong need to make average people aware that they can do more for their money than what their getting at the bank. The service is free. When a family picks up a product (if the chose too) the company pay the agent.
All MLMs aren't bad. But, there are A LOT of bad ones out there that get the most publicity. And it sucks.

7:52 AM  
Anonymous Anonymous said...

well, if he meade his money by just selling his ideas in a book,........... and it upsets you that hes not telling the truth,....
then why dont you just... do the same?

5:24 PM  
Blogger Norman said...

This one is a TOOL ;) Unfortunantely I still have my moral compass and wouldn't be able to sleep at night if I made money because of lying.

9:35 AM  
Blogger neal79 said...

"We have no other debt except for the 2 houses" So your 1.45M in debt! and your trying to give financial advice. Are you serious! Your not jealous? are you sure? Kiyosaki knows education is important, and he knows that it dosent teach you how to get wealthy. "Wealthy" Sure doctors, and lawyers make good money. Yes! they're educated, and they're wife are doing good. Because doctors live in hospitals. 400 people in american control the major wealth. And not one of them are doctors. The 1st wealthiest man dropped out of college, and the 2nd has a masters. Degrees have nothing to do with wealth. and that is what Kiyosaki is trying to say. Its good that you see yourself being wealthy. And you will! But do it without trying to bring some down. If you read the book to learn instaed of trying to be entertained, you might have undersstood what he meant. Bill Gates controls the internet. And if he tells my friend who waits at a resturant here in Omaha That he is excited about Quixtar. Why would i go against that. Yes, Gates comes to Omaha to spend time with his friend Warren Buffet who lives in Omaha. God Bless you on your journey to freedom. And seriously, get free by encouraging people noy by brining people down. Kiyosaki didnt take time out of his day to badgger you. C'mon man.

12:32 PM  
Blogger neal79 said...

Like you said 90% of business fail after a couple of years and Quixtar is no different. Investers fail, Real Estate fails, I even know people that failed in college etc. Failing happens not matter what. Everbody makes mistakes. Quiting is a whole different thing. The reason why businesses "failure" rate is so high is because people dont have any idea how to run a business, and they quit. I know people that failed in college, and i know people that dropped out. the people that hung in there and learned from they're mistakes graduated. more people drop out of college then graduate. If you go on in life thinking that the world is supposed to be perfect, your gonna have a hard time making it in the real-world. You get on Kiyosaki about him and education, but you dont sound educated yourself. At all. I hate school, but I'm graduating in May. I feel that anybody can succeed in anything, as long as you dont give up and quit. If something happens in your Real-estate so serious that you feel like quiting, but you dont. you'll for sure make your dream of freedom come true. My family does Real-estate in Maui. They went bankrupt, but they hung in there and now they are pulling in 6 figures. sure they could have quit when they went bankrupt, but they didnt and know they live comfortable. I myself, see good things happening with the internet. And my family is so professional, they respect and encourage me instead of telling me that it wont work. Be professional. You can do it. If your so sure of yourself in real-estate and know your going to be a success, but God forbid something bad happens and you quit. The only person to blame is yourself. Go and make your dreams come true. get your wife free from her job that she might love, but not want to do for the rest of her life. Oh! and if Quixtar is a scam and cult! What is credit cards and Wal-Mart? Hmm...........Something to think about. People dont gain wealth from credit or savings.

1:10 PM  
Blogger Norman said...

Kid I'm old and am already invested in real estate, stock market, a job and run a small business. It’s not easy but I love it and have you ever heard of diversifying your assets?

1.4M in real estate debt is nothing because the BANK CANNOT CALL THE LOAN like what happened during the depression so as long as you're paying the loan you don't need 1.4M right now. Get that? Go to a Real Estate seminar so you learn the basics.

How many drop outs are actually wealthy? He dropped out of HARVARD, he's definitely not dumb now is he. Warren Buffet got rich in purely investing and got his MBA in Economics which definitely helped him in his investment decisions. He also studied under Benjamin Graham the proponent of value investing…blah blah blah.

Shows how smart you are talking out of your ass.

I have read more works of kiyosucky than most people because I love people who come from the bottom and get to the top. That's why I was disappointed to learn he made his money SELLING HIS BOOKS NOT MAKING MONEY FROM REAL ESTATE OR INVESTING. GET IT? HE LIED BECAUSE HE GOT RICH OFF THOSE WHO BUY HIS BOOKS and ENDORSED BY THE PYRAMID SCHEMING QUIXTAR. He didn't get rich like he said he did. And getting involved in a PYRAMID scheme, wow how original. Smart people know how it works and it's a scam. Do your reasearch on Pyramid Schemes. How hard is that to understand?

And seeing you're not really a blogger and probably only created an account to comment you're another one of those kiyosucky fanboys aren't you.


10:56 AM  

Post a Comment

<< Home